When you tell people that you are looking to rent a house, more often than not you’d hear the response “You’re wasting money”, “Why rent when you can buy”, “Your rent would be equal the mortgage”, or “Invest in something that can be yours”.
Deciding whether to rent or to buy is a big decision that any aspiring property owner or occupant would face. The cost is more often than not the main driver in the decision-making process, however when weighing the options that you have, it’s a lot more than just the cost.
Here are a few advantages to aid your decision making and may just tip the scales and make you decide to rent:
1. Fixed Budget
With renting a house, you as the lessee, can commit the rent month on month based on your contract. This is a big advantage since this is now a fixed cost and can be included in your monthly budget.
Another benefit that one can enjoy when renting is getting to pay less upfront. Although there are upfront payments like a deposit and security deposit, this would still cost less compared to paying equity.
The real cost of ownership is a lot more than just paying equity, a mortgage, realtor fees, closing costs, and property taxes. There are also other costs to consider such as recurring payments like Homeowners Association (HOA) Fees and Insurance and Incidental expenses, mostly covering maintenance, repairs, and house upkeep. All of which would most likely be not part of your budget if you are looking to rent.
2. Mobility and Stability
Renting provides less commitment and a lot more flexibility and mobility for any major life changes. If the time comes that you need to move for a job, move to a better school district, or just want to change scenery and environment. Although not advisable, it is a lot easier to terminate a lease than sell your house. This level of freedom is a huge advantage to those who have not established roots and are still trying to find the community or area they would want to live in.
3. Not Risky
You will always hear that “Real Estate is a good investment”, generally this statement holds true. However, there are certain instances where real estate properties depreciate such as the market crashing, neglected property, or may even be more supply than demand. As a renter depreciation and fluctuations in the market won’t affect your lease in any way.
4. Less Strict Credit Requirements
For people who are just starting out or were in a tight spot before giving rise to a situation where you may have bad credit, renting may be a good idea to get you back on track. Renting has a lot more elbow room when it comes to credit requirements.
5. Perks and Amenities
If you are renting in apartment complexes, these usually have recreational community amenities such as playgrounds, swimming pools, etc. that would otherwise be more expensive if you set up your own home. Other apartments would even have functional amenities that can result in savings in your daily expenses such as gyms, laundry rooms, and business centers. The use of these community amenities is usually open to all tenants and included in the rent.
A few perks that renters sometimes experience are free internet access, utilities included in the contract. These may be small costs in value but if you scale it to living in that apartment for a year, that’s hundreds and hundreds of dollars saved and avoided, Although this does not apply to all lessors and is entirely dependent on your contract and agreement.